I think you’re confusing DOT regulations with USPS regulations.
What you’ve quoted from the DMM confirms that you can mail small canisters via ground mail. This is also what Ken Powers’ page concludes.
It’s the DOT that restricts freight carriers such as UPS and FedEx from hauling small canisters.
Here’s an excerpt from DOT regulation 173.306:
173.306 Limited quantities of compressed gases.
(a) Limited quantities of compressed gases for which exceptions are permitted as noted by reference to this section in § 172.101 of this subchapter are excepted from labeling, except when offered for transportation or transported by air, and, unless required as a condition of the exception, specification packaging requirements of this subchapter when packaged in accordance with the following paragraphs……
(1) When in containers of not more than 4 fluid ounces capacity (7.22 cubic inches or less) except cigarette lighters. Special exceptions for shipment of certain compressed gases in the ORM-D class are provided in paragraph (h) of this section…………..
Link to 173.306
Link to 172.101 Scroll down to butane.
Also see definitions of gas, containers and packaging and follow any references.
Because the capacity of a typical 4 fluid ounce gas canister is actually greater than 4 ounces, the DOT 173.306(a)(1) exemption does not apply.
In other words, you can ship 4oz canisters via USPS ground mail, but not via UPS or FedEx (without HazMat papers and fees).
-Hope that helps